Three new IPOs this week kick off the August IPO calendar. Renaissance Capital, which manages IPO-focused ETFs, reports the three companies will generate a combined $629 million in IPO proceeds.
July was a stellar month for the IPO market. There were 10 companies that went public last month, making July the third highest-volume month of 2016. These deals brought in total proceeds of $2.7 billion. That makes July the biggest month of the year for IPOs in terms of funds raised.
First Hawaiian is the Hawaii-based subsidiary of French banking giant BNP Paribas. It's the state's biggest bank, with 62 branches and roughly $19 billion in assets. Ratings agency Fitch gave the bank a strong credit rating of "A-" due to its strong profit and liquidity levels.
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The First Hawaiian IPO will be the biggest bank IPO since September 2014. That was when Citizens Financial Group Inc. (NYSE: CFG) raised $3 billion in its debut to become one of the biggest U.S. bank offerings ever.
Although the S&P 500 financial sector is down 3.5% this year, new banking stocks have outperformed. Renaissance Capital reported all three 2016 bank IPOs have returned an average of 10%. Bank of Hawaii Corp. (NYSE: BOH) - First Hawaiian's closest peer - is also up 8.6% in 2016.
First Hawaiian is set to raise $464 million by selling 21.09 million shares at a $21 to $23 price range. The company is valued at $3.1 billion and will start trading on Friday, Aug. 5.
Now, here are two more deals on the upcoming IPO calendar, including the first big-box retail IPO in over a year...
At Home Group Inc. (NYSE: HOME) is a home décor retail chain based in Texas. The specialty retailer sells items across a range of categories, including furniture, patio, seasonal décor, and garden. The company has 115 superstore locations and plans to open a total of 600 over the long term. At Home Group will be the first big-box retailer - a type of store occupying a large building and selling thousands of different products - to go public since Ollie's Bargain Outlet Holdings Inc. (Nasdaq: OLLI) in July 2015. Its sales have seen a compound annual growth rate of 20% since 2013.
The At Home Group IPO will raise $130 million by offering 8.67 million shares for $14 to $16 each. It commands a $920 million valuation and will hit the market on Thursday, Aug. 4.
Motif Bio Plc. (Nasdaq: MTFB) is a biotech developing an antibiotic that targets bacterial infections. Its lead candidate, Iclaprim, is about to complete phase 3 trials and is used to treat resistant strains of pneumonia. Shares of Motif Bio already trade on the London Stock Exchange. They've surged more than 44% so far in 2016.
The Motif Bio IPO will generate $35 million in proceeds by selling 2.8 million shares for $12.42 each. It has a $110 million valuation and will debut on Friday, Aug. 5.
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Alex McGuire covers initial public offerings for Money Morning. Follow him on Twitter for the biggest IPO updates.
